Market Overview#
On Friday, the S&P 500 index declined by 0.61%, closing at 6,632.19. This drop leaves the index about 5% below its recent peak. The Nasdaq Composite fell by 0.93% to finish at 22,105.36, while the Dow Jones Industrial Average decreased by 119.38 points, or 0.26%, settling at 46,558.47.
Weekly Performance#
The S&P 500 marked a new low for 2026, losing 1.6% over the week and experiencing its first three-week losing streak in nearly a year. The Dow Jones fell approximately 2% for the week, and the tech-heavy Nasdaq saw a decline of 1.3%. Investors are closely watching how the ongoing conflict in the Middle East may influence expectations for interest rate cuts this year.
Federal Reserve Meeting#
This week, the U.S. Federal Reserve will hold its first meeting since the recent air strikes on Iran, which have caused a spike in oil prices. Officials are expected to discuss how these energy price increases could impact inflation and economic growth. The Fed will also release updated economic projections on Wednesday.
Markets have started to adjust their expectations for interest rate cuts, which had previously fueled stock market optimism. The Fed is anticipated to keep interest rates unchanged for the second consecutive meeting, following a pause in rate cuts earlier this year due to improved labor market conditions.
Nvidia Conference and Earnings Reports#
In addition to the Fed meeting, Nvidia's annual developer conference is expected to draw attention to advancements in artificial intelligence (AI). CEO Jensen Huang will likely present a new AI chip called Feynman and discuss developments in data centers and AI applications.
Investors will also be looking out for earnings reports from companies like Micron, Alibaba, and Lululemon this week, which could further influence market sentiment.